By Liesl Venter, FTW 16 April 2021
Neutral consolidator CFR Freight has signed a block space agreement (BSA) with Etihad Airways in conjunction with its partner in China, Shipco Airfreight. According to airfreight route developers Chilton Corrigall and Megan Ekermans, this allows the company to offer a solution to the market at very competitive rates. “On the exports side, we have managed to secure contracts on a few key lanes with core carriers which will help our clients stay relevant in the market,” said Ekermans. And while air cargo demand is continuing to increase, capacity remains constrained – although it is showing a slight increase. “Demand is still outweighing supply when it comes to capacity,” said Ekermans. Limited available contract rates for a fixed period, resulting in fluctuation in rates from the carriers, was another challenge to deal with said Corrigall. “Our blocked space solutions are therefore very viable products for clients who need capacity at favourable rates. They also secure access to capacity. ”Despite the numerous challenges facing the airfreight sector at present, both Corrigall and Ekermans are upbeat as lockdowns around the world are gradually lifted and economies begin to restart. “Also, the delays being seen in sea freight, coupled with container shortages, have led to an increase in airfreight demand,” said Ekermans, indicating that with access to capacity both for imports and exports, CFR Freight was hopeful that its air cargo volumes would continue to rise.